ALMOST half the Ministry of Defence land at Devonport could be disposed of to private enterprise following Princess Yachts move into the South Yard.

The Herald has learned that of the 400 acres in the naval base, 150 of them could be released under a project called Programme Roundel, which focuses on what redundant land to off-load.

This would include more than half, 87 acres, of the South Yard, the first 15 of which have just been handed over to Princess Yachts, on a 125-year lease, to build 105-foot and larger super vessels.

It is now hoped the company's move will act as an 'anchor' to bring in other main industries and create hundreds of jobs over a number of years.

The Royal Navy is looking into this seriously and has just started work on another project, related to Roundel, which is likely to continue for another 18 months to five years, called Vision 25.

This is looking at what facilities the naval base will need by 2025. It is expected to produce a report by March next year.

David James, operations and development manager at the South West of England Regional Development Agency, helped organise the Princess Yachts move by making out 'the economic case for disposal'.

He said about 10 sites in the naval base are 'surplus to MoD requirements' and could be released to marine sector employers and 'a substantial number of jobs could be created'.

"The MoD will look at which ones will have market value," he said. "South Yard is the obvious candidate for release. Princess Yachts is the first phase of the first site."

He said potential disposals include 'lots of land and workshops'.

The areas being looked at also include historic listed buildings. Mr James added: "To bring it up to full heritage standard will cost a lot of money."

He said uses could include further marine technology companies with a 'high skills base', but there could be residential properties on 'the upper terraces'.

"It won't be all employment," he said.

"We are still in the process stage with the MoD. It has a lot of thinking to do about moving other facilities, and cost, and maintaining security."

He added: "Princess Yachts is an anchor trader, a major business, which has potential to attract other businesses behind it – and its supply chain is considerable."

Nick Heath, area manager for Defence Estates, the body which disposes of unwanted MoD land, explained that Vision 25 will look at the 'amount of facilities required' by the naval base in 16 years time, while Roundel will 'deliver that change'.

"It will be disposals, relocations, refurbishments and new builds," he said. "It's an on-going scenario."

He said: "There are a lot of MoD units which have to be moved out."

Naval Base Commander, Commodore Ian Jess said: "There's some parts (of the South Yard) we need to retain. There are two key jetties we will retain. But more than 50 per cent of the South Yard we will be looking to dispose of.

"There are some other sites on the periphery but the heart of the base we expect to retain and they will be getting busier."

He sees the future of the base as a vibrant hub of activity, with Princess Yachts and other private businesses operating in the South Yard, Babcock working in the centre of the base, and the amphibious centre of excellence active in the area around Weston Mill.

Cdre Jess described bringing in Princess Yachts as 'a big step, a signal of intent'.

He said that although the firm had come in on a 125-year lease the ultimate aim was to sell off the land which would make it 'easier to develop'.